Warner Bros. Discovery is said to reject Paramount Skydance’s takeover bid

[Warner Bros. Discovery Upfront 2022 - Show]
Mike Coppola/Getty Images Entertainment

Warner Bros. Discovery (NASDAQ:WBD [https://seekingalpha.com/symbol/WBD]) turned down an initial acquisition offer from Paramount Skydance (NASDAQ:PSKY [https://seekingalpha.com/symbol/PSKY]), viewing the proposal as undervalued, Bloomberg News reported, citing people familiar with the matter.

Warner Bros. (NASDAQ:WBD [https://seekingalpha.com/symbol/WBD]) rejected an offer of roughly $20 per share made in recent weeks.

Paramount (NASDAQ:PSKY [https://seekingalpha.com/symbol/PSKY]), now led by David Ellison, is said to be weighing several options to keep its pursuit alive, including raising the offer price, appealing directly to Warner Bros. (WBD [https://seekingalpha.com/symbol/WBD]) shareholders or bringing in a financial backer to strengthen its bid.

Bloomberg previously reported that Paramount (PSKY [https://seekingalpha.com/symbol/PSKY]) has discussed potential funding support with Apollo Global Management (NYSE:APO [https://seekingalpha.com/symbol/APO]).

Ellison took control of Paramount (PSKY [https://seekingalpha.com/symbol/PSKY]) in August after completing an $8 billion merger between the studio and his own company, Skydance Media.

MORE ON WARNER BROS. DISCOVERY, PARAMOUNT SKYDANCE CORPORATION, ETC.

* Paramount Skydance: Sunny Skies Ahead, Long-Term Bet [https://seekingalpha.com/article/4827677-paramount-skydance-sunny-skies-ahead-long-term-bet]
* Warner Bros. Discovery: Stock Price Action Points To A Market Valuation Weakness [https://seekingalpha.com/article/4827581-warner-bros-discovery-stock-price-action-points-to-a-market-valuation-weakness]
* Wall Street Lunch: Yahoo's AOL Heads To Italy In Potential Sale To Bending Spoons [https://seekingalpha.com/article/4827506-wall-street-lunch-yahoos-aol-heads-to-italy-in-potential-sale-to-bending-spoons]
* Warner Bros. Discovery gains on report about status of Paramount Skydance talks [https://seekingalpha.com/news/4503324-warner-bros-discovery-gains-on-report-about-status-of-paramount-skydance-talks]
* Paramount Skydance Chief sees `lots of options' for media deals [https://seekingalpha.com/news/4503105-paramount-skydance-chief-sees-lots-of-options-for-media-deals]